IPO Update: Amar Remedies

Banking on Toothpaste to bring Smiles !

Amar Remedies has entered the capital market with an offer of 1.5 crore equity shares through 100% book building process in the price band of Rs 24-28 per equity share of Rs 10 each. The object of the issue to set up a Ayurvedic institute at Surat.
Investment Guru recommends investors to apply in the IPO. The objective should be to offload on listing. Long term Investors can hold on to the stock with a 2 years perspective to generate the real potential of the stock.

Let’s dig into the company :
The company was established in 1984 by Mr. P. Shah for developing Ayurvedic Medicines.

The company has three products at present in its portfolio with Tooth Paste segment as a major contributor. The company markets its product under brand name “AMAR”

The company cliams to produce the first Vegetarian Toothpaste.

The company has regional market share for its products mainly in Wester and eastern parts of India.

The company has ambitious plans to launch its 25 FDA approved Ayurvedic medicines in India as well as in International markets. However, the market for Ayurvedic product is dominated by niche players and the company would have to staisfy with second grade buyers for its products.

The company is a profit making company since 1995.

The company clocked revenues of 106 crores for the year ending 30-June-05 with a net profit of 6.87 crores. Net profit was up 89% compared to previuouys year, while the sales shoot up by 29%.

The pre issue EPS stood at Rs.6.16. However, post issue the EPS would come down to 2.63.

The issue comes with a post-issue P/E of 10.6 which looks reasonable given the ambitious expnasion plans of its product portfolio.

Issue opens : 25-Aug-05
Issue closes : 31-Aug-05


Anonymous said...

You can apply by filling the application form available through brokers like karvy, ILFS etc.
Question for Rajesh: What listing levels can we see for this scrip?

Anonymous said...

Hi Anil Kumar,
If you have kotak street/sharekhan online account,you can apply online amar remedies..

Anonymous said...

Hi Mr. Leap,
If you read Rajesh's write-up carefully, the major earnings are coming from exports for the company. So absence of a brand name do not matter much. As far as subscription is concerned, I am sure this tock will be oversubscribed at leat 20 times.
Rajesh, your comments please ?

Anonymous said...

I am going to apply Rs.50000/- on this issue. expecting a return of at least Rs. 10 per share.

Anonymous said...

Hi rajesh
Request your expert advice on the Talbros IPO.

Anonymous said...


Rajesh Soni said...

Hi b4uleap,
Thanks for popinting the export numbers for the company. I really appreciate this and that's why I encourage people to put their comments. Your observation is correct. I have modified my post to reflect this. However, the recommendation remains intact. I do see that public response to this issue is not so good, hence it would be a wise decision to aplly for the number of shares a investor is intersted in taking or at the most twice of it for those who want to play with listing.
Happy Inevsting !

Happy Investing.

Anonymous said...

Thnaks for the update Mr. leap.
I agree with you and Investment Guru both.

Anonymous said...

Amar Remedies IPO poll: Majority say apply

Amar Remedies IPO opened on August 25. Moneycontrol polled market experts to find out if investors should apply in this issue or not. Majority said that investors should.
from Money control

Anonymous said...

Mr Leap,
I am wondering if other people would have got confused by your earlier remarks
Please exercise restrain in putting your observations. I am still hopeful that this issue will get oversubscribed by at least 10 times by tomorrow. and the listing should also be good. Even moneycontrol has advised to aplly in this issue.
Anyway, best of luck to all those who are applying in the issue. Lets take advantage of the IPo boom and add wealth to our corpus.

Anonymous said...

have anybody ever used Amar toothpaste?
Is not true that lately Investment Guru has become IPO Guru???